ISLAMABAD: The foreign exchange reserves of Pakistan with the State Bank of Pakistan have increased to the record level by exceeding $18 billion. According to the SBP, its forex reserves amounted to $18.2 billion after receiving $1 billion against the issuance of Eurobonds.
Pakistan issued Eurobonds last week which attracted many investors from the international market. After receiving $1bn, total SBP reserves surged to $18.2 billion, the highest since 2015-16 when the central bank held $18.14 billion. The country’s total reserves include holding of scheduled banks. On July 2, the country’s reserves were $24.4bn compared to $23.098bn in FY16.
It may be noted here that Pakistan issued Eurobonds worth $300 million for five-years at a rate of 5.857 per cent, $400m bonds for 10-years at the rate of 7.125pc and $300m for 30 years at the rate of 8.45pc.
Higher foreign exchange reserves helped the county to bring stability in exchange rate, improved current account deficit and offered support to meet the increasing trade deficit.